Bangladesh’s net foreign direct investment (FDI) rose 12.78 per cent year-on-year to $346.94 million in April–June 2026, driven largely by reinvested profits rather than fresh capital, underscoring the challenge of attracting new foreign investors.
Bangladesh Bank data show net FDI fell 22.44 per cent from $447.31 million in January–March, even as gross inflows edged up to $1.11 billion, with substantial outflows offsetting incoming investment.
Net reinvested earnings jumped 55.08 per cent to $260.91 million from $168.24 million a year earlier, accounting for about three-quarters of total net FDI.
In contrast, net equity capital declined 4.77 per cent year-on-year to $77.42 million from $81.30 million, and slipped 1.07 per cent from the preceding quarter.
Net intra-company loans plunged 85.17 per cent to $8.61 million from $58.08 million a year earlier. Although gross loans reached $333.80 million, repayments and other outflows of $325.19 million left little net financing.
Compared with January–March, intra-company loans fell 67.04 per cent from $26.13 million, while reinvested earnings dropped 23.92 per cent from $342.92 million.
Invest Bangladesh, the government’s investment promotion agency, described stronger reinvested earnings as a sign of confidence among existing foreign investors but acknowledged difficulties attracting fresh equity amid geopolitical uncertainty, the Middle East conflict and higher energy prices.
Net FDI outside export processing zones (EPZs) rose 20.75 per cent year-on-year to $280.88 million, while economic zones attracted $4.51 million, down 25.33 per cent from a year earlier but up from $0.42 million in January–March.
Invest Bangladesh Member for Investment Development Nahian Rahman Rochi said the overall increase was encouraging, although cautious investor sentiment continued to constrain new equity investment.
He said stronger reinvested earnings reflected confidence in Bangladesh’s long-term business prospects and could support expansion, higher production capacity and employment.
Rochi said the agency was addressing structural investment barriers and working to convert its $1.3 billion project pipeline into actual investments, while recent announcements by major international companies offered encouragement.
He also highlighted progress on the Chinese Economic and Industrial Zone, stalled for more than a decade, saying development was advancing towards a 2028 completion target, with approximately $500 million in prospective investment.
Improving economic zones’ investment readiness and addressing shortcomings identified in the agency’s 180-day progress report remained priorities, he said.
Rochi stressed the need to turn investment interest into operating factories and jobs.
